We recently introduced a brand new investment offer, which we announced to you in our June 2021 edition of Dialogue. This fdp Perspective Private Portfolio marks a real step forward in terms of its flexibility, its customization and above all of its ability to evolve at your personal and professional pace. It’s part of our effort to respond ever more precisely to the needs of notaries, whose career and life paths vary according to each notary’s unique reality.
What does this flexibility mean in concrete terms? We will demonstrate this with a few examples. But first a few words about the need to know yourself well as an investor.
My profile, my reactions
By speaking with your advisor to determine or adjust your investor profile, you are laying the foundations for your future decisions. Because what this profile will reveal is not in which pre-established investor category you belong, but rather your understanding of your investment portfolio and, above all, how you react to the market events that can influence it.
Your behaviour in these circumstances is very important because, as every financial advisor knows, emotions play a big role in how investors perceive their investments. According to your project, by accurately assessing your tolerance for risk or for the unexpected, and by recognizing your reactions to market events, you can build an investment portfolio that’s right for you. You will also get a better understanding of the planning that is required to reach your goals.
Not always smooth sailing…
But of course, the road of life can be bumpy at times. At different stages, events can occur which may cause you to deviate from your original plans and which will require more or less rapid adjustments to new circumstances: change in your career path, birth of a first child, health problems… Your investment portfolio should adapt to your reality and help achieve your objectives, so it has to be flexible enough to adjust to your new needs, while continuing to build your savings.
It’s with this in mind that the fdp Perspective Private Portfolio was created, and that’s why we believe it can effectively meet your needs.
- Since it comes in 17 different equity and fixed-income weightings, it can be tailored precisely to your investor profile.
- If your profile changes over the years, adjustments can be made to the Portfolio, since it essentially involves changing the weighting, not the products. A tax impact is to be expected, but since you’re not exiting one portfolio and creating a very different one, the change doesn’t have the same significance from a tax perspective.
- Depending on your interests and your values, you can personalize your investments even more with the addition of one of our optionalities. Adding them to your Portfolio enables you to invest in industries that will shape our societies for decades to come.
NOW LET’S LOOK AT SOME SCENARIOS THAT COULD REQUIRE ADJUSTMENTS.
Life change on the horizonA notary on the South Shore, Ava is self-employed. From the start of her practice, she was keen to set up her own office and build her reputation in her community. At age 37, she has proven herself and her skills are recognized. However, she finds the administrative and human resources management burdens that her situation entails increasingly onerous and demanding. A few weeks ago, she was contacted by a firm in the private sector, which offered her a position with attractive career prospects. This opportunity would allow her not only to increase her income, but also to consider new career developments. She views this change as very positive and decided to accept the proposal, which will, however, involve the sale of her office. Since Ava has been an fdp client since she was 18, she has managed to build savings, which she reinvested in the Perspective Private Portfolio. Because of her many professional responsibilities, Ava is a prudent investor and the weighting of her Portfolio is 45% fixed income and 55% equities. The additional income generated by her new position will impact her portfolio, as will the income generated by the sale of her office. A discussion with her advisor is necessary since her new work situation calls for a review of her investor profile. Higher income and lower expenses could mean a greater tolerance for risk and, consequently, a change in the fixed income/equity weighting of her Portfolio. In this context, she could even consider investing in one of the optionalities of the Perspective Portfolio: considering her personal interests, the Environment optionality could very well provide increased diversification for her investments. |
When a child arrivesA lot is happening in the life of Isabella, age 27. She started her notarial practice just a few years ago by opening an office. She got married just over a year ago and is now expecting her first child. All these developments are very exciting, but also lead to a host of questions, especially financial ones. There is, of course, the issue of maternity leave, which is not that simple because she has to find someone to replace her during her absence from work. She can ask a fellow notary to step in, but her leave will have to be shortened. She will have to make arrangements to manage the situation and return to work more quickly. Invested in a Perspective Private Portfolio, Isabella is aware that this big change in her personal life will also affect her investor profile, which will need to be reviewed with her advisor. Currently the weighting of her Portfolio is 30% fixed income and 70% equities. The discussion with her advisor will lead to a slight change in this weighting, to 35% fixed income and 65% equities. The tax incentives related to the arrival of her first child will allow her to maintain more or less the same asset weighting, while adopting a slightly more cautious approach. |
Always tailored to you
The fdp Perspective Private Portfolio is an investment solution that adapts to your needs. Talk about it with your wealth management advisor and see how this Portfolio can give you the personalization and flexibility you’re looking for. The reason is simple: it was created for you, notary.
The information presented in this article is for informational purposes only and should not be construed as constituting a recommendation to buy or sell securities. In addition, the financial planning and tax strategies mentioned in this article may not apply in all cases. Please consult your wealth management advisor or your tax specialist, accountant or legal advisor.
